posted 08.52 a.m. est
pre-open comment Friday 20th September
Thursday’s session generated a narrower but higher Value Area. Sellers Responded (red-at-top) immediately after the open to a test of Wednesday’s high. If ES prints 1723 or higher it would negate any ST negative implications of that imbalance and only Significant Selling marked below First Level Support at 1685.50 (12mn poc) would be of concern.
Stocks>50dyma numbers: Nyse 71%, Nasdaq 62%, R2000 60%. Numbers >50 are considered supportive.
First Level Support = 1685.50 (12mn poc)
Second Level Support = 1644.50 (5mn poc)
Sentiment: For the fifth day running my version of the Rydex Assets Ratio was almost unchanged at 3.88. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Printed a twelve day high on Tuesday but remains in a weak price location below 107.22, the 6mn poc.
Oil USO: Bulls would want to see chart hold (or quickly recover) its strong price location above its Support band, i.e. 37.31, the 1/2R off 2011 high and 37.93, its maj poc. Pre-open today chart is probing that Support.
Gold GLD: Despite printing a seven day high on Tuesday, the chart remains below 134.17, the 12mn poc, in a weak price location. Momentum is negative and down.
Dollar Index: Tuesday’s sharp sell-off briefly tested the important Support at 80.15, major 1/2R and poc. Price printing time below this level would put the chart in an extremely weak location.
EURUSD: On Thusday printed its highest level since February. Momentum is up and positive.
